MSI is considering eliminating a product from Toddio Town Tours collection. This collection is aimed at children one to three years of age and includes lours of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have impressive sales. However, sales for the third CD in the collection, The Post Office Polica, have logged the others. Several other CDs are planned for this collection, but none is ready for production Mais information related to the Toddle Town Tours collection follows: Segmented Income Statement for MSS Todd Town Tours Productes Variable costs Contribution margin Loss Detodo Segment margin Le Commons Nel pering income on) Pet Store Grocery in Parade Celwy Pokal $50,000 $45.000 $15,000 23.000 19.000 10.000 $27.000 $20,000 $5,000 4100 3100 3.500 22,200 $22.000 $1,000 1440 12.000 4320 SZ10940120 Total $110,000 $2,000 5,000 11.400 $40.000 31,00 14000 "Allocated based on low sales revenue Polka (POP) program would not impact sales of the other two toms. The remaining fed overhead currently located to the POP product would be redistributed MSI has determined that mination of the Post O to the remaining two products, Required: 1. Calculate the incremental effect on profit if the POP product is eliminated Electon Pro 2. Should MSI drop the POP product? Yes O No 3-a. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $3,700 of the common fed costs could be avoided if the POP product line were eliminated noct on Pron I 3-b. Should MSI drop the POP product? Yes No